Pent-up housing demand during state shutdowns is about to be unleashed as many coronavirus-related restrictions to daily life are lifted or relaxed and consumers return to the real estate market, says Lawrence Yun, chief economist for the National Association of REALTORS®. In the latest video from NAR’s “Pivot in Place” series, Yun says home sales are bouncing back from their bottom during the COVID-19 pandemic and offers strategies to prepare your clients to make moves quickly amid the return of bidding wars.
Looking forward, the market is ripe for robust activity. Mortgage applications are defying economists’ expectations, rising 54% since April, the Mortgage Bankers Association reported last week. Mortgage rates for 30-year loans have broken through record lows three times in as many months, making borrowing costs favorable for prospective buyers who are looking to get off the fence and purchase. And even though NAR reported a 21.8% drop in pending home sales in April, the association says they likely won’t go any lower. Meanwhile, home prices continue to rise, even as uncertainty around the pandemic persists.
Article originally published by the National Association of Realtors